April 15, 2013 (Proactive Investors) – Bahamas Petroleum (LON:BPC), which searches for oil off the group of Caribbean islands, cut its losses in 2012, with an exciting year on the agenda thanks to new government sanctions.

A new government elected in the Bahamas last year recently confirmed that the company can drill off its shores ahead of a referendum process, which will only be held once commercial oil is found.

This clarification on the referendum, the company says, will help it with talks that are taking place with potential farm-in partners.

In 2012, the company made a loss before tax of US$6.3mln, down from a loss of US$10.1mln the year before. It ended the period with US$21.3mln cash in the bank compared with US$35mln in 2011.

The year was spent primarily de-risking potential well locations, while drilling plans were also etched out.

Simon Potter, Bahamas chief executive, said: “2012 was a busy year for Bahamas Petroleum which recently culminated in significant progress for the company.

“We have worked relentlessly to progress towards our ultimate goal of drilling an exploration well to evaluate the scale of hydrocarbon resources.”

He continued: “Our focus is now firmly on developing this fresh political mandate into progress with potential farm-in partners and thus drilling preparations over the next 12-18 months.

“That drilling will proceed under strengthened and modernised regulations is to be welcomed as this will provide the Government, as well as the people of the Bahamas, sound assurance of a solid environmental and safety framework consistent with international best practices.

“We are closer than ever to realising our goal of exploring the hydrocarbon potential of the Bahamas and look forward to the near-term future with excitement and confidence.”

Source: Proactive Investors